Study On The Legal Problems Of Cross-Shareholding

Cross-shareholding of company appeared in the western developed countries first in the middle of 20 century. Company laws regulate it with different patterns in accordance with their own countries' circumstances. Comparatively speaking, cross-shareholding of company is a fresh research topic in our country. It is a new thing in China because of the short history of our modern company system. In recent years, as the development of the Chinese economic reform, many companies are engaged in it. And the society pays much attention to it.With the profitable exploration and continuing development of economic practice on cross-shareholding of company in China, it is imperative for theoretical researchers to study deeply on it and build up rational rules and institutions to regulate, guide and develop cross-shareholding of company. On the one hand, the company law of our country does not say anything about cross-shareholding. On the other hand, we are confronted with serious global challenge especially after entered WTO. Cross-shareholding can be used to organize enterprise groups and improve commercial efficiency. But it also has disadvantages and would cause many problems, such as violating the principle of capital abundance, limiting reasonable currency of capital and leading to monopoly easily, causing the confusion of the idea of company value, bringing on the control of shareholder's meeting by management etc. Owing to the above reasons, we should research into this problem and make laws to regulate it.Aiming at the legislative vacancy and stagnancy on relative fields of Company Law of our country currently, this paper makes a profound study oncross-shareholding in order to regulate it and guide our economic activities, at the same time, perfect the relative law system and make it suitable to the development of the market-oriented economy, and also bring good conditions and enough spaces for our country's law to integrate with the law of developed countries. There are seven chapters in this paper. We use theoretical analysis, case-studying, comparison analysis to make a detail statement. Chapter 1 is a comprehensive digest of the paper. In Chapter 2 we mention the reason of cross-shareholding's occurrence and analyze its law essence theoretically. Chapter 3 is about it's economic function, including affirmative and negative aspects. We review the effectual settlement of other countries and area, especially introduce the concerned law rules of Japan, Germany, French and Taiwan in Chapter 4. And then give some examples to explain the actuality of cross-shareholding in our country and the shortage of our law in Chapter 5. In chapter 6, we put forward some proposal of law rules on cross-shareholding, including clearing the value-oriented of legislation, and adopting the tolerant attitude to cross-shareholding of company, forbidding cross-shareholding between parent company and subsidiary, setting up the correlative institution, such as the restriction of voting rights, making the information of cross-shareholding public etc.The strongpoint of the paper is mainly performing on three aspects. First, we sum up the reason of cross-shareholding's occurrence and points out its legal basis and law essence. Second, we analyze the foreign experience roundly. Third, there are some typical cases used to explain the actuality of cross-shareholding in our country. And we give some suggestions on how to regulate cross-shareholding by law after summing up the shortage of our present law system.